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Satyam Computer sold to Tech Mahindra

April 13, 2009August 20, 2014Editor

Satyam Computer Services has found a new home in Tech Mahindra. It will pay Rs 58 a share, or a premium 23% premium over Friday’s close, to acquire a 31% stake in Satyam. That speaks for Satyam’s value even after all the fudging of books or for Tech Mahindra’s desire to acquire Satyam. Either way, it’s an outcome that will please Satyam’s shareholders, board and the government itself. The shareholders got a good price, the board has managed the sale process without any glitches and the government would be happy that it remains in Indian hands.

Satyam sale enters final stage today

April 13, 2009August 20, 2014Editor

The board is expected to open financial bids on Monday submitted by a few bidders remaining at the last stage. Among them are believed to be Tech Mahindra, L&T, Cognizant Technologies and some private equity funds. If the gap between the first and losing bids is less than 10%, then there will be open auction. The highest bidder in the auction will be declared the new owner.

Satyam’s board takes baby steps

January 12, 2009August 20, 2014Editor

Satyam Computer Services’ new board held its first press conference, where it faced a barrage of questions. Towards the end, Deepak Parekh, eminent banker and a special director on Satyam Computer Services’ board lost his cool. After spending some few hours in the company today, the enormity of the task seemed to have sunk in.

Satyam’s new board inspires confidence, but needs reinforcements

January 12, 2009August 20, 2014Editor

The government moved swiftly and nominated three directors for the new board of Satyam Computer Services. Satyam’s three new directors are HDFC chairman, Deepak Parekh, a veteran businessman and troubleshooter; Kiran Karnik, Nasscom’s past chairman and CS Achuthan, the former presiding officer of the Securities Appellate Tribunal. These are good choices to inspire confidence.

Yawning gap in Satyam’s balance sheet

January 8, 2009August 20, 2014Editor

Corrected: The Assets’ side total is Rs 2889 crore and not Rs 2936 crore as was earlier stated, in the last paragraph.

Satyam’s options are not many

January 7, 2009August 20, 2014Editor

Can Satyam continue to function under a tainted board? Satyam’s board was already a thinly manned one, with just five members. Two are the promoters B Ramalinga Raju and his brother B Rama Raju who have given their resignations. Ram Mynampati is the senior executive on the board. He has been with Satyam since 1999. The company website says he is the president, commercial and healthcare, since October 2002. It is very difficult to imagine him as the interim CEO, as Raju’s letter proposes, in a situation where trust in its board has evaporated.

Satyam’s shocking admission: revenues, profits and cash inflated

January 7, 2009August 20, 2014Editor

Satyam Computer Services is staring at a big hole in its books, due to falsification of accounts over a number of years, by its promoters. Even as the seriousness and extent of the problem will emerge over the next few weeks, the company could even be staring at bankruptcy, unless a quick bailout is arranged.

Satyam promoter’s stake falls after lenders sell pledged shares

January 6, 2009August 20, 2014Editor

The reason for the possible dilution of Satyam Computer Services has become clear now. Satyam’s promoter has said that the entire stake held by SRSR Holding Pvt Ltd (a promoter group holding company) has been pledged to institutional lenders. Since the share price has been declining, these lenders have been selling shares to cover the margin shortfall.

Satyam postpones buyback meeting, bigger restructuring planned

December 29, 2008August 20, 2014Editor

Software services provider Satyam Computers has postponed today’s board meeting to consider a buyback. Its chairman, B. Ramalinga Raju said that considering the questions that have been raised in the past two weeks, the need for them to be properly addressed and considering the interests of stakeholders, the company is broadening the scope of deliberations beyond a buyback.

Satyam Computer proposes buyback, will have limited impact

December 19, 2008August 20, 2014Editor

Satyam Computers has entered into damage control mode, proposing a buyback to return cash to shareholders. The IT services major recently proposed a buyout of two group firms –Maytas Properties and Maytas Infra- in the construction and infrastructure business. The move angered shareholders who went on a selling spree, from which its shares are yet to recover.